What buy and hold international stocks/etfs do you like that you think may have higher future returns than VXUS? There’s been lots of talk recently about international investments, but for years now, VXUS and just buying the entire world market, minus the US, has been the only one that I’ve really heard about, and the returns have been so significantly less than US stocks and ETFs.
One concern I thought of is that VXUS holds 8000+ companies. Considering that the S&P 500 is mostly driven by just a few companies, I’d like to see how an etf that was compromised of just a few hundred non-us companies performed. Also, I was curious about other EX-US etfs that might have good returns in the future in general, even if the US has poor returns
So far I’ve found 3 ETFs found that have caught some of my interest:
BKIE- mid to large cap developed markets EX-US etf with just under 1000 holdings. This sounds a lot like what I was looking.The index it tracks also has had decent returns historically.
IDMO-based on the S&P World Ex-U.S. Momentum Index. Apparently the holdings are rebalanced twice a year based on a momentum score. I’m not sure if this rebalancing will be considered a taxable event in my account, but this index/etf also has good returns. After further reading, it sounds like ETFs following momentum indexes may be bad to hold during bear markets though?
Country/Region specific ETFs such as DBEZ- hedged eurozone etf. I’m not sure how an etf like this would do if the US dollar fluctuates wildly since it’s hedged, but it’s a choice if I want to focus on the eurozone.
So, what would you go with if you wanted to buy and hold and get reasonable returns? An etf for a specific region like China, Europe, or Australia? A momentum etf? An index like the developed market large cap? I’m curious what you think and if you have any other ETFs that you think I should know about.